What Is HARP For Underwater Mortgages
HARP stands for HOME AFFORDABLE REFINANCE PROGRAM and it was created by the Obama Adminstration to assist homeowners who were victims of the 2008 Real Estate and Mortgage Collapse where the homeowners mortgage balance was higher than the actual value of their homes. Millions of homeowners turned in their keys to their homes to their mortgage lenders and walked because the mortgage loan balance was substantially higher than the value of their homes. To reward homeowners who planned on sticking it out and remain in their homes even though the mortgage balance was higher than the value of their homes, the federal government implemented the HARP for underwater mortgages, in 2009. HARP For Underwater Mortgages is offered by the FHFA, which is the Federal Housing Finance Agency . To qualify for the HARP for underwater mortgages program, your mortgage loan must be owned and/or guaranteed by Fannie Mae or Freddie Mac. Mortgage loans that are not owned or guaranteed by Fannie Mae or Freddie Mac will not qualify for the Home Affordable Refinance Program.
Qualification Requirements For HARP For Underwater Mortgages
Many homeowners who went through the real estate market crash of 2008 got so discouraged about having underwater mortgages and the shock of losing most or all of the equity in their homes that they have not participated on the Home Affordable Refinance Program. The Home Affordable Refinance Program are for conventional mortgage loans only and does not apply to FHA loans. To participate in HARP for underwater mortgages, your home does not have to be an owner occupant home. Your home can be a second home, an investment home, a multi unit 2 to 4 unit primary or investment home, Condominium, PUDS ( Which are Planned Unit Development ), and manufactured homes. Other requirements to qualify for the Home Affordable Refinance Program are as follows:
- The mortgage loan borrower must be in good standing with their current mortgage mortgage loan with timely payments in the past twelve months. One 30 day late payment is permitted in most circumstances.
- To participate in the HARP loan program, the current loan-to-value(LTV) MUST be greater than 80%
- The mortgage loan must have been sold to Freddie or Fannie on or before May 31st, 2009
- The homeowner needs to be able to afford the new mortgage loan housing payment.
- The Home Affordable Refinance Program got extensions after extensions. The deadline for the Home Affordable Refinance Program is set for December 31st, of 2015. If you are considering refinancing through the Home Affordable Refinance Program, you can contact Gustan Cho at firstname.lastname@example.org or contact him at 262-716-8151.